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Finweek English Edition - - The Finweek -

MIN­IS­TER OF FI­NANCE Pravin Gord­han may have got rid of one headache with leg­is­la­tion to curb the in­flu­ence of the SA Re­serve Bank’s pri­vate share­hold­ers but he may have cre­ated dif­fer­ent prob­lems in the process. The SA Re­serve Bank Amend­ment Bill not only aims to limit the num­ber of shares the Bank’s pri­vate share­hold­ers can hold, it also in­tro­duces the first ma­jor re­struc­tur­ing of the Bank’s board of di­rec­tors since it was formed in 1921.

The Bill pro­vides for an ex­panded board from 14 to 15. It al­lows pub­lic nom­i­na­tion of di­rec­tors, in­clud­ing two with min­ing and labour back­grounds. They re­place two of four with com­mer­cial and fi­nan­cial ex­pe­ri­ence.

A panel – which will “screen” pub­lic nom­i­nees – will be chaired by Bank Gover­nor Gill Mar­cus, plus a re­tired judge, some­one hand­picked by Gord­han as well as three mem­bers cho­sen by the Na­tional Eco­nomic Devel­op­ment and Labour Coun­cil.

No­mura In­ter­na­tional econ­o­mist Peter At­tard Mon­talto re­acted by say­ing that al­though the re­vamp was ac­cept­able, prob­lems may oc­cur with fu­ture ap­point­ments. He warned hav­ing a sep­a­rate man­date for the board and for the Bank’s Mon­e­tary Pol­icy Com­mit­tee opened the pos­si­bil­ity of the Bank fol­low­ing the Pol­ish ex­am­ple,

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